Carl Icahn and Bitcoin
In my post from a couple of days ago, I mentioned that bitcoin will trade above $40k soon. An hour later it broke the $40k level, and 200 DMA but dropped below the level on the same day. It tried to break the blue line resistance yesterday as well but got rejected. Two rejections and today bitcoin looks disheartened as it trades around $36k. The day isn't over but hopefully, it closes at a lower low (between $34k - $35k). The overall situation looks quite neutral for now.
The RSI has been trending lower as shown in the chart below -
Best to look for a breakout on both BTC and RSI before longing anything for trade.
What is 200 DMA for bitcoin is 50 DMA for ETH.
I would have liked a sharper correction in ETH. ETH has fallen more than BTC but a retest of 50 DMA support or a drop in RSI to slightly oversold conditions would have been nice.
Anyway, there is some positive news and then some shoddy piece of journalism. Carl Icahn is interested in Bitcoin, well more so in digital assets. He is studying the whole space and wants to invest close to a billion dollars in the industry. Of course, for him, that means investing in businesses - exchanges, custodians, market makers, hedge funds, etc. What it means for our crypto news desks is -
Activist investor Carl Icahn is interested in getting into cryptocurrency in a “big way,” and may eventually put more than $1 billion into an alternative currency.
Then if someone takes the effort to read the whole article, he wants to do what he does best - take a stake of some sort or be involved in a business.
“I’m looking at the whole business,” said Icahn, referring to the crypto industry. “I’m not looking at what to buy necessarily at this time. I’m just looking at the whole business and how I might get involved with it.”
Whether all these legends of finance buy bitcoin or not, they are seeing the potential in this space. Even if they get involved in a business in the more traditional sense, the legitimacy they provide to the crypto universe is invaluable. They know regulators, they know politicians, they know almost every entity that can be a roadblock to future crypto adoption. So with fundamentals intact and more people finding value in crypto, whether bitcoin breaks $40k today, this week, or in 2 weeks, it does not matter. $100 this year, here we come!
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